O.C.G.A. § 33-16-4 (2019)
Issuance of certificate of authority; qualifications; proposed changes to plan of operation
(a) No person shall transact or attempt to transact business as a farmers’ mutual fire insurance company unless so authorized by an effective certificate of authority issued by the Commissioner.
(b) The Commissioner shall not issue or permit to exist any certificate of authority as to any insurer not qualified for such certificate unless it is shown to the satisfaction of the Commissioner that:
(1) The farmers’ mutual fire insurance company maintains the minimum surplus required by subsection (a) of Code Section 33-16-13;
(2) The farmers’ mutual fire insurance company maintains a security deposit as required by subsection (c) of Code Section 33-16-13;
(3) The farmers’ mutual fire insurance company has submitted an acceptable business plan to the Commissioner that includes, but is not limited to, two-year financial projections and supporting assumptions reflecting expected premiums and losses, counties where the farmers’ mutual fire insurance company intends to insure property, and the contingent liability, if any, of its members; and
(4) It must otherwise be in compliance with the requirements of this chapter.
(c) Any proposed changes to a farmers’ mutual fire insurance company’s plan of operation subsequent to licensure pursuant to this chapter, including but not limited to geographical expansion, shall be filed and approved in advance by the Commissioner.
History
Code 1933, § 56-2004, enacted by Ga. L. 1960, p. 289, § 1; Ga. L. 1970, p. 165, § 1; Ga. L. 1981, p. 809, § 1; Ga. L. 1989, p. 688, § 1; Ga. L. 2012, p. 1040, § 1/SB 203; Ga. L. 2019, p. 337, § 1-77/SB 132. The 2019 amendment, effective July 1, 2019, substituted ‘‘by an effective’’ for
‘‘by a currently effective’’ in subsection (a); and deleted ‘‘currently’’ preceding ‘‘qualified for such’’ in subsection (b).
Annotations
The 2012 amendment, effective July 1, 2012, substituted the present provisions of subsection (b) for the former provisions, which read: "(b) The Commissioner shall not issue or permit to exist any certificate of authority as to any corporation or insurer not currently qualified for such certificate unless it is shown to the satisfaction of the Commissioner that:
"(1) It has received bona fide applications from not less than 25 citizens of this state for not less than $100,000.00 of insurance covering farm property located in the county or counties in which it is organized to transact business, which shall not be more than four contiguous counties and those counties which are contiguous to the county of the corporation's or insurer's domicile and with not more than the maximum amount of insurance permitted on a single risk under Code Section 33-16-14;
"(2) It has collected in cash the first payment or premium or assessment required to be paid in advance by each such applicant for its insurance according to the company's bylaws or has received from each such applicant such form of obligation, if any, as may be provided for in the bylaws to cover liability for payment of initial assessments and any future assessments as may be levied;
"(3) There is on deposit to its credit, in a bank located in the county of its domicile, funds representing a surplus of its assets over its liabilities in the amount of not less than $10,000.00; provided, however, that if such company writes an amount of insurance coverage of $7 million or more, the deposit of funds representing a surplus of its assets over its liabilities shall be an amount not less than $30,000.00;
"(4) At the time of filing the petition for a charter as required under Code Section 33-16-3, the organizers of the proposed company have filed with the Commissioner a qualified bond in the sum of $5,000.00 with good and sufficient security, subject to the Commissioner's approval. The bond shall be conditioned for the prompt return to members of all money collected from them in advance and for payment of all indebtedness of the company if the organization of the company is not completed within two years after the date of the granting of the charter; and
"(5) It must otherwise be in compliance with the requirements of this chapter."; and added subsection (c).
The 2019 amendment, effective July 1, 2019, substituted "by an effective" for "by a currently effective" in subsection (a); and deleted "currently" preceding "qualified for such" in subsection (b).
Law reviews. - For article surveying developments in Georgia insurance law from mid-1980 through mid-1981, see 33 Mercer L. Rev. 143 (1981).